In the wake of Hurricane Sandy, we all have some contemplation ahead of us regarding the value of power continuity and what it means for long-term business success. For lodging in particular, power continuity must be viewed as an increasingly strategic consideration, given the critical role lodging plays in providing shelter during an extended outage. And it is not just those in traditional hurricane corridors like the Gulf and Southern Atlantic coastlines who must plan for power continuity in the event of extreme weather; hurricane strike zones have extended almost up to Maine, and heat waves, droughts and ice storms can also be expected to disrupt power supply regardless of geographic location.
Traditionally, companies that have a critical need for power have invested in expensive on-site diesel generator backup systems with fuel tank storage to carry them through an outage expected to last a couple of days (in the case of data centers, UPS systems with battery banks are often added to provide automatic transition to on-site power). But systems that rely on fossil fuel generation are at odds with sustainability plans that seek to lower carbon footprint. Further, the Achilles heel of a diesel-based system is two-fold: extensive maintenance requirements are often overlooked and on-site fuel tanks limit operational capacity. Too often, backup diesel generators fail when disaster strikes because of inadequate maintenance, and when an outage lasts beyond a few days, fuel tanks must be replenished, and sources may not be reliable during the chaos of storm recovery. In short, diesel generators are a legacy backup solution designed to address the risk of infrequent, short-term outages, a strategy that is increasingly incompatible with the rising need for reliable power continuity for when the grid goes down for an extended period.
Fortunately, technological advances are making new Distributed Energy Resource options available that offer improved value propositions. Building energy efficiency includes spray foam insulation, window treatments, radiant barrier in attics, and white rooftops. Appliance energy efficiency includes LED lighting and upgraded chillers, boilers, and HVAC systems. Energy management systems provide greater awareness and control options. Having addressed energy waste, building owners may now contemplate a new wave of distributed generation technologies that enable energy self sufficiency for the first time.
Microturbines, Fuel Cells & Other Options
Natural gas fueled microturbines produce both electricity and waste heat that can be used for heating and cooling (i.e., combined heat and power or CHP). Natural gas fuel cells produce electricity chemically. Solar photovoltaic systems have dropped dramatically in price. In some cases, micro wind solutions are feasible. New energy service business models make these technologies available without a huge investment in capital. Third party service companies offer outsourcing to remove the complexity and risk of such decisions. With these new options, building owners can consider practical, cost-effective strategies for dealing with more frequent blackouts. Becoming energy self sufficient is not only more reliable than traditional backup power from diesel generators, it is cleaner and more cost-effective.
Enhancing a building’s energy capabilities, whether it is through a retrofit or at the design stage, has added benefits for lodging guests, facility managers, hotel operators and building owners. Optimizing efficiency and sustainability capabilities at the energy room level relieves the imperative to reduce energy costs at the room level, enhancing a hotel’s core mission of comfort and convenience. Facilities personnel still need to maintain systems, but with new energy technologies in place, the energy room starts working with them rather than against them. Owners and operators see improved financial results from tighter cost management and improved revenue security. Service contracts avoid the need for capital expense, offering further financial benefits. Adding energy self sufficiency to operational and real estate enhancement strategies is an idea whose time has come.
This may sound too good to be true, but it may also be a lack of awareness and limited imagination that hold us back from lower risk and greater profitability (e.g., outsourcing design decisions to engineering companies who are married to traditional approaches like diesel generators for backup power and boilers to heat water). It is typical for consumer adoption to lag technology advances, but given the emerging distributed energy technologies described above, it’s time for lodging executives to take a more expansive view of their sustainability goals, adding new power options to their strategy.
Move Beyond the Diesel Generator
To be sure, new building design and building retrofits should start with measures to ensure the most efficient use of electricity. But the best strategy will also evaluate and incorporate new energy technologies to enable normal operations using on-site power that also ensures power continuity in the event of a grid outage. Moving beyond the diesel generator as a backup power solution is an idea whose time has come.
John Cooper, a founding partner at NextWatt Solutions, is a nationally-recognized innovator in the energy industry. Co-author of The Advanced Smart Grid, Cooper now works with commercial clients on innovative approaches to power continuity that use new distributed energy resources and business models, with a special focus on power continuity in the lodging industry. He may be reached at john@nextwattsolutions.com.
